Section 67 of the Property Practitioners Act (PPA) makes it mandatory for a Property Practitioner (PP) to not accept a mandate unless the seller or lessor of the property provides the PP with a fully completed and signed Mandatory Disclosure as set out in regulation 36 of the Act.

Section 67 furthermore states that the PP must provide the completed Mandatory Disclosure to a purchaser or lessee before making an offer.

The following provisions of the PPA relating to Mandatory Disclosure requires highlighting:

1. The disclosure form is a standard template as set out in regulation 36 of the PPA and deviations from the prescribed template should first be approved by the exemption committee of the PPRA, which they will do upon receipt of a completed form E1 as per section 4 of the PPA together with your proposed mandatory disclosure form.
2. The disclosure form must be signed by all parties and attached to the sale or lease agreement to form an integral part of the sale agreement.
3. A PP must retain all accounting records, correspondence, agreements, mandates, disclosure forms and other documents relating to the financing, sale, purchase or lease of property for a period of five-years in terms of section 55(1) of the PPA.